It is the latest variation on the increasingly complex problem for universities of trying to get extra income without deterring students.

Under the controversial Higher Education Act, universities and colleges may charge undergraduate fees of up to £3,000 which students will repay after they graduate on an income-related basis.

Only one university, Leeds Metropolitan, has told the government's Office for Fair Access that it wishes to charge £2,000. All other universities have gone for the maximum amount of £3,000 but are offering a range of bursaries and scholarships.

The University of Central Lancashire - whose vice-chancellor Malcolm McVicar lobbied vigorously against variable fees - intends to charge £3,000 a year as well, but today announced it would award Ones to Watch scholarships, worth £1,000 each, to all UK, full-time undergraduate students who come from homes where the principal earner's gross salary is less than £60,000 per year.

Students themselves will be asked to report their parental income and the university expects about 90% of its annual intake or 3,400 will be eligible - a payout of £5m a year, representing more than half the extra fee income it estimates it will receive.

Dr McVicar said market research among 15-year-olds who will be 18 in 2006 revealed contradictory attitudes. On the one hand they were worried about the costs of going to university but on the other they equated price with quality and thought a university charging less would be inferior.

"I think what this is telling us that people are very interested in the financial aid package that institutions will make available. We are very concerned that students will be put off [by the new fees], particularly at the beginning, and we want to use part of the money to help students when they need it most."

All courses at university will have fees of £3,000, bringing in £1,800 extra revenue on top of the current upfront fee. Of this £1,000 will go to the student and £800 to the university.

"We see this as being bold, giving generous assistance to students and helping to maintain access," added Dr McVicar, who believes the scheme is simple enough to get the message across to students.

The university is also introducing 'excellence scholarships', which are to be introduced in shortage subjects like engineering and science. Local scholarships, which currently target students from working-class backgrounds within Lancashire, are to be extended to Cumbria and there will be 'partner company scholarships' to build on links with local companies.

Income from the Higher Education Funding Council for England (Hefce) and top-up fees would enable the university to invest in staff and buildings, Dr McVicar said. "On the assumption that Hefce funding is maintained and costs don't spiral we think this is affordable."